The share price of this Navratna stock gained 7% to an intraday high of ₹753 per share after the company signed a Memorandum of Understanding with AD Ports Group to explore business opportunities in the area of trade logistics.
Rites Ltd shares closed at ₹746.70 per share, up 5.94% on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹17,943 crore.
According to the company’s exchange filing, Rites Ltd signed a Memorandum Of Understanding(MoU) with AD Ports Group, to explore joint ventures and collaborations in key areas of trade and logistics.
The collaboration combines RITES’ expertise in transport infrastructure development and project management with AD Ports Group’s extensive portfolio of world-class ports, logistics solutions, and vertically integrated business Clusters.
This agreement is to explore potential opportunities in the upcoming IMEEC and infrastructure development such as ports, multimodal logistic parks, free trade zones, rail connectivity projects, and logistics infrastructure services.
AD Ports Group is the leading facilitator of global trade, logistics, and industry in Abu Dhabi.The group operates in several clusters including Digital, Economic Cities & Free Zones, Logistics, Maritime & Shipping, and Ports, AD Ports Group’s portfolio comprises 27 ports and terminals, with a presence in over 40 countries.
Rites Ltd shares have gained 62% in the last six months and a multibagger return of 123% in a year. For instance, a shareholder investment of ₹1 lakh in the company a year would be worth ₹ 2.23 lakhs.
The company’s revenue has increased by 1 percent yearly, from ₹677 crore in Q3FY23 to ₹ 683 crore in Q3FY24. In the same time frame, the company’s net profit declined by 12 percent, from ₹147 crores to ₹129 crores.
Rail India Technical and Economic Service (RITES) was established in 1974, it is undertaken by the Ministry of Railways as a public sector enterprise. The company is one of the leading players in the transport consultancy and engineering sector in India, and exports railway equipment globally.
As of the third quarter of the fiscal year 2024, the firm possesses an order backlog totaling ₹5,496 crores. In terms of revenue distribution, the company derived 51% from Consultancy Services, 6% from Leasing services, and 38% from Turnkey Projects. Furthermore, when considering the Geographical Split, the company garnered 8% of its revenue from international markets and the remaining 92% from the domestic market.
Written by Omkar Chitnis
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